Incoming RBS Chairman defends financial crisis role

RBS building

Incoming Royal Bank of Scotland Chairman Howard Davies has defended his role in setting up the financial regulator that presided over the near meltdown of Britain's banking system.

Reuters reports that Davies was a surprise appointment to succeed Philip Hampton as chairman of state-controlled RBS after the Financial Services Authority (FSA) he set up in the 1990s was widely criticised for inadequate supervision of banks in the run-up to the 2007-9 financial crisis. The FSA was subsequently disbanded.

Davies told the news agency that the FSA was not a 'light-touch' regulator and was not to blame for the failure of banks such as RBS, which cost taxpayers $67bn to rescue.

'The big problem during the crisis was that banks didn't have enough capital. It had nothing to do with light-touch regulation', he said in an interview on Monday.

To access the complete Reuters article hit the link below:

New RBS chairman defends his record as regulator

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